Eureka to buy $3.1m seniors’ rental village in Cairns

Eureka Group Holdings
has executed a contract to purchase, for $3.1 million, the land and buildings for a 51-unit seniors’ rental village that it has been managing for six years in Smithfield, Cairns. The company was confident of getting approval on commercial terms to fund the deal, it said.

Eureka, which at the end of June 2013 managed 29 seniors’ rental villages, is selling certain stand-alone management rights and reinvesting the funds in actual freehold high-performing villages it already manages. Last month Eureka said National Australia Bank had approved $3.8 million in funding for the purchase of a 93-unit village in Mackay.

Eureka also said the sale of management rights at its village in Chermside, Brisbane had settled, with gross proceeds of $575,000 in excess of book value.

Last year Eureka, which reported a near 90 per cent drop in full-year net profit, said it would sell three management rights in an effort to generate $1.7 million.